Trump Is Said to Seek Cutting Corporate Tax Rate to 15 Percent

Trump Is Said to Seek Cutting Corporate Tax Rate to 15 Percent

APRIL 24, 2017 WASHINGTON — President Trump has instructed his advisers to make cutting the corporate tax rate to 15 percent a centerpiece of his tax-cut blueprint to be unveiled this week, according t ... (New York Times)

More supply-side socialism with the con artist big lie of job creation.
Demand, through higher wages, creates jobs, not more corporate welfare.

 

got to have factories which offer higher wages to create a demand, less college welfare and more trade schools and factories

 

At it's essence, a business is just a group of people working cooperatively to earn a living.

We tax personal income derived from that business.

Why do we tax the income the business generates?

If it were up to me, I wouldn't tax any business for the business it conducts in the U.S.

 

My company is struggling. This tax cut will save jobs of union members who voted against Trump.

 

It's not that simple.
http://ctj.org/ctjreports/2013/06/fact_sheet_why_we_need_the_corporate_income_tax.php#.WP600_nythE

#1, repealing the corporate income tax would create a big revenue shortfall, which would have to be made up by higher taxes on individuals. So at best, it would be a wash.

#2, in reality it wouldn't be a wash, because much of the profits could be deferred for decades. And two-thirds of it would NEVER be taxed, because it would be paid out into retirement plans and the like. So to make up the revenue shortfall, the individual rate would have to be raised EVEN MORE.

#3, because the corporate income tax falls on shareholders (and isn't really passed through to consumers), it is a highly progressive tax, paid mostly by wealthier households. That helps balance out the relative lack of progressiveness in the rest of our federal tax system.

Combine #3 and #2, and repealing the corporate income tax would result in -- surprise, surprise! -- a massive shift in the tax burden from the wealthy to the middle class.

Shocking how most GOP tax proposals somehow end up doing that, huh?

And then there are the other practical issues -- like, it's easier to collect money from a single corporation than from thousands of shareholders.

There are arguments for getting rid of the tax -- eliminating double taxation, and eliminating some bad incentives -- but any replacement would have to address the tax burden shift, as well as be careful not to create even WORSE incentives.

 

LOL, China tried to tell us this awhile ago. I know you might not like the idea for companies to keep employees but hey, you must be a live off the government teat and own three houses Bernie Sanders liberal.

 

Check this out:
https://www.theguardian.com/commentisfree/2011/mar/15/tax-corporations-treasury-large-companies
http://www.slate.com/articles/news_and_politics/explainer/2008/10/why_do_we_tax_corporations.html

 

I read both articles, but I don't agree with either one of them.

Tax justice can be achieved through the taxation of personal income, but the vehicle for creating that income should be left alone, in my opinion.

 

If you want LESS of something RAISE TAXES ON IT.

If you want MORE of something, LOWER TAXES ON IT.

I, for one, want MUCH MORE economic activity/growth, why don't you?


Nothing would be better for American businesses, especially SMALL BUSINESSES, who employ the most Americans, by far.

The economy would take off like a rocket..

 

Before we make any changes to tax law, let's have a Constitutional Amendment that states that Congress may not spend more money than is received. Included in the Amendment would be a provision that states that every year the Government must repay 350,000,000,000 of the National Debt, clearing our debt by 2070.

Three hundred fifty billion is about 10% of current tax revenues.

 

I agree it is your opinion, merely responding to the opining of the conclusions you chose to draw.

 

So who then pays for the infrastructure that they use ?

 

People are not taxed, MONEY is taxed. "Corporations" are just tax havens today. Hell, I have one that I declare a loss on every year, and it saves me a lot on my overall tax burden.

This ideal from the right that personal income tax is somehow good for the country is beyond ridiculous. We have already shifted most of the tax burden onto the individual taxpayer, this is just more of the same. Any time we talk about corporate taxes, the right throws out "jobs....we need to keep jobs", when in reality the Congressional Research Service has 60 years of evidence to the contrary.

Lets be realistic here. Taxes on corporations are already at all time lows. Stop focusing on the statutory rate, and focus on the effective rate. Before some righty jumps in with "we already have the highest corporate tax rate in the world" line, remember that NOBODY pays the statutory rate. Our Effective rate in this country is what they actually pay, and in 2013 most major corporations paid around 12.9%

http://money.cnn.com/2013/07/01/news/economy/corporate-tax-rate/

 

I understood Trump wanted to reduce corporate tax rates. Currently, the effective rate is 12.6% which means the big end of town is paying very little if any.

http://money.cnn.com/2013/07/01/news/economy/corporate-tax-rate/

 

It works every single time with the Republican base......they continue to believe that money trickles down, it does not......you just have to look at the last two years of the Bush admin to see that money goes to money. Regan raised taxes....

 

Clinton raised taxes retroactively and would've had the debt paid off by 2006 if it wasn't for the Bush Administration complete incompetence at the economic levels.

Now here we go again with a short-term gain that will lead to long-term pain as the companies will use the money to offshore more jobs and increase the speed at which they automate.

 

More specifically, I wouldn't tax their income. If the business sits on property, I'm perfectly OK with that business paying property taxes which pay for police, fire, roads, and education, among other things.

 

large employment factories are not coming back

 

Pure rubbish. The only positive Clinton got was the dot com boom which collapsed putting the country where it always was but left with more job killing taxes.

 

Why is it that lefties hate corporations being treated like people when it comes to political donations, ala Citizens United, but are all in when it comes to personal income tax.

 

A sad fact that so many can't see.

 

Here we go again with a half thought out soundbite which ignores the complexities of the economics of the time

Clinton had the beneficial affects of the 90's tech boom. In the 90's the economy experienced a "jobless recovery," where GDP growth and corporate earnings returned to normal levels while job creation lagged behind. The investment surge in the Dot-Com sector would jumpstart the economy beginning in late-1995. The dot com bubble burst in 2000 followed by a recession in 2001 which lasted until 2003.

>>>MOD EDIT Off Topic Removed<<<

 

they sure won't be coming back while we have the third highest corporate tax rate in the world, they would be foolish to

 

I'm ok with corporate tax rates being cut because they simply pass the tax charge onto consumers.

But we need controls in place that will say XYZ must happen to your product/service due to the cut, so the tax cut doesn't just enrich the rich.

I doubt anything will see a reduction in price due to a reduced tax rate though.

 

Stop the flow of illegal labor by making it almost impossible for companies to hire them and the wages will rise.